Clark County taxable sales get February boost, up 3.2 percent

By Cy Ryan

Wednesday, April 27, 2011 | 9:22 a.m.

CARSON CITY -- Paced by strong sales of vehicles and clothing, Clark County posted $2.1 billion in sales during February, an increase of 3.2 percent compared to a year ago.

The state’s taxable sales totaled $2.9 billion, up 4.3 percent from a year ago.

The state Department of Taxation reported today that revenue collected for the month from the sales and use tax amounted to $58.9 million, a 4.9 percent increase compared to February 2010. For the first eight months of this fiscal year, tax collections are 2.8 percent, or $14.2 million, above the projection of the Economic Forum made earlier this year.

This is the final report on taxable sales before the Economic Forum meets next Monday to forecast the amount of taxes that will be collected in the next two fiscal years. The state budget must adhere to this figure unless taxes are increased. The sales and use tax is the largest producer of revenue for the state.

Gov. Brian Sandoval announced Tuesday that nearly $50 million will be added to health and welfare programs because of unexpected revenue. In addition, an advisory committee that predicts tax collections from smaller sources also estimated there would an increase in taxes collected.

The advisory committee on Tuesday estimated those smaller sources of tax revenue would yield an extra $36.1 million this fiscal year and another $36.1 million in the next two fiscal years above earlier predictions.

In Clark County in February, auto sales jumped 20.2 percent and clothing sales rose 12.9 percent. But bar and restaurant activity fell by 1.4 percent and sale of construction materials was down 6.2 percent. General merchandise sales were off 1.3 percent, but the furniture business in Clark County inched up 1.7 percent.

The department reported taxable sales fell in Washoe County by 3.1 percent, but jumped 10.4 percent in Carson City. Sales of electronic and appliance items in Carson City jumped 17.6 percent and general merchandise business increased by 8.8 percent.

The Economic Forum will hear from experts on the outlook for the next two years. For instance, Alan Schlottmann, professor of economics at UNLV and Dennis Smith, president of the Home Builders Research, Inc., will give presentations.

The forum will then make its projections of tax revenue.